Euroleague for Team Financial Fair Play: Low and high pay limit and compensation for competitive balance

Basketball announced details of the organization’s teams, which will begin gradually to be implemented from this year and will be fully implemented from season 2027/28. The financial “life” of the Euroleague teams will begin to change (will reach full implementation from the 2027–28 season onwards) , with a series of regulations related to Financial Fair Play. The Euroleague teams should be harmonised with the new rules in order to balance their finances and strengthen competition. Standard Competitive Balance or CBS, low and high level of remuneration and compensation of a competitive balance are some conditions that will enter the group’s everyday life. What Euroleague said “Euroleague introduces groundbreaking regulations for Financial Fair Play The Euroleague Commercial Assets Shareholders’ Assembly (ECA) approved the application of a Competitive Balance Sheet Standard (CBS), a new set of regulations strengthening the scope of the applicable Financial Stability and Fair Play Regulations (FSFPR). Financial Stability & Fair Play Regulations were first implemented in the 2014–15 season in order to protect group collective interests from the financial risk of individual clubs, limiting shareholders’ contribution and promoting business performance. CBS will co-exist with the already active Financial Stability and Fair Play Regulations, such as the maturity system or audits in the overall financial position of the clubs. Why? In order to align the objectives of stakeholders with a reference to the minimum and maximum levels of remuneration for collective income of clubs, strengthening trade cooperation between them. To promote sustainability and competitive balance by establishing wide player spending which will be equal for all league teams based on collective revenue of clubs. To prevent inappropriate practices and each team to comply with the default levels before stating its players per season. To increase transparency between participating groups. The new Competitive Balance Standard (CBS) was developed in the last two seasons after working with a club committee. It was presented and agreed by the EuroLeague Players Association (ELPA). CBS represents the natural evolution of existing Financial Stability and Fair Play Regulations to respond to the current realities of clubs and the league, providing equal pay levels for all clubs based on the average collective revenue of EuroLeague teams rather than the revenue of each individual team. This idea is based on the European league ecosystem, harmonising the impact of different tax models across the continent, assessing all indicators in net amounts. The new Financial Stability and Fair Play Regulations (FSFPR) will introduce three common pay levels for all teams: The Basic, High and Low. These will be calculated on the basis of the average defined revenues of the clubs (LCDR: revenue from the days of the games, commercial and other) which will be created every two seasons. These levels will mark the minimum and maximum costs for each club in fees, while allowing exceptions for some players aimed at attracting, developing and maintaining the best players. This is the first time that a mandatory threshold of costs for players’ remuneration is introduced in the FSFPR, ensuring that a minimum net amount of 32% of all collective revenue will be spent on Euroleague athletes. What are the basic concepts of the Competitive Balance Standard (CBS): Low Level of Remuneration “LRL” : That is 32% of the average defined revenues of the Licensed Groups (LCDRs), calculated at fair value in terms of the two seasons. This is the minimum net amount the clubs have to spend on the salaries of the stated players. Groups that do not have long-term contracts will be able to reduce to the Low Reward Level. Basic Level of Remuneration “BRL” : i.e. 40% of the average fixed income of the Licensed Groups (LCDR). This is the maximum net amount that all clubs can spend on all declared player salaries, except: Up to two Primary players (e.g. team stars), U23 players, “olds” in each team with at least three years presence and not necessarily consecutive, the injured from two months on, as well as the Medium-Range players i.e. one player per team which will be determined by the minimum and maximum percentage of the Basic Level of Remuneration. High Level of Remuneration ‘HRL’ i.e. 60% of the average defined revenues of the Licensed Groups (LCDR): The maximum net amount that each club can spend on declared player salaries: Up to two Primary players (p.a. the team stars) and excluding U23 players, “olds” in each team with at least three years presence and not necessarily continuous, injured from two months on, as well as Medium-Range players i.e. one player per team which will be determined by the minimum and maximum percentage of the Basic Level of Reward. Compensation of competitive balance ‘CBC’: Any group spends more than the specified Base and/or High Reward Levels will be required to compensate all other clubs remaining within the specified limits. CBS will have a transitional period of an entire season (2024–25) for participating clubs to adapt to new regulations, while measures will be gradually introduced over the next two seasons, reaching full implementation for the 2027–28 season. Euroleague Basketball, on behalf of its clubs, thanks ELA for its cooperation and support in implementing this initiative, as it firmly believes that it is a crucial step towards a fully sustainable future, greater protection for players from financial instability and true cooperation that aligns teams, players and leagues with the public, the primary objective of the development of Euroleague. “